NAND KISHORE BARETH, Jaipur v. ITO, Jaipur

ITA 528/JPR/2013 | 2008-2009
Pronouncement Date: 10-07-2013 | Result: Partly Allowed

Appeal Details

RSA Number 52823114 RSA 2013
Assessee PAN ABSPB7037R
Bench Jaipur
Appeal Number ITA 528/JPR/2013
Duration Of Justice 1 month(s) 25 day(s)
Appellant NAND KISHORE BARETH, Jaipur
Respondent ITO, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 10-07-2013
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 10-07-2013
Date Of Final Hearing 10-07-2013
Next Hearing Date 10-07-2013
Assessment Year 2008-2009
Appeal Filed On 15-05-2013
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR BEFORE SHRI B.R. JAIN ACCOUNTANT MEMBER ITA NO. 528/JP/2013 ASSTT. YEAR : 2008-09 PAN : ABSPB 7037 R SHRI NAND KISHORE BARATH VS. THE ITO H-9 CHITRANJAN MARG WARD- 6(2) C-SCHEME JAIPUR JAIPUR (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.M. MEHTA RESPONDENT BY : MS. ANITA RITESH DATE OF HEARING : 10.07.2013. DATE OF PRONOUNCEMENT : 10.07.2013 ORDER PER B.R. JAIN A.M. THIS APPEAL BY ASSESSEE AGAINST THE ORDER DATED 05 .09.2013 OF LD. CIT (APPEALS)- II JAIPUR RAISES THE FOLLOWING GROUNDS :- (I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE LD. CIT(A) HAS ERRED IN SUSTAINING THE APPLICATION OF PROVISIO NS OF 145(3) OF I.T. ACT. (2) THE LD. CIT(A) WAS NOT JUSTIFIED IN SUSTAINING TRADING ADDITION OF RS. 1 01 517/- MADE BY APPLYING HIGHER G.P. RATE ON DECLARED SALES IGNORING THE FACT THAT THE ASSESSEE HAD ACHIEVED HI GHER TURNOVER THAN IMMEDIATELY PRECEDING YEAR WITH MORE OR LESS SAME N UMBER OF CUSTOMERS. 2.1 BRIEFLY THE FACTS ARE THAT THE ASSESSEE DERIVES INCOME FROM BUSINESS OF LIQUOR IN THE PARTNERSHIP. IT HAS DECLARED INCOME OF RS. 3 83 560 /- BY DISCLOSING GROSS PROFIT RATE OF 16.87% BUT THE AO AFTER FINDING THAT THE ASSESSEE DID NOT ISSU E ANY SALE BILLS NOR MAINTAINED THE STOCK REGISTER OR QUANTITATIVE RECORDS ENTERTAINED THE VIEW THAT TH E TRADING RESULTS ARE NOT OPEN TO VERIFICATION. HE THEREFORE AFTER PROVIDING THE OPPORTUNITY PROCEE DED TO REJECT THE BOOKS OF ACCOUNT BY APPLICATION O F PROVISIONS OF SECTION 145(3) OF THE ACT AND ESTIMAT ED THE INCOME AT RS. 4 85 080/- BY APPLYING THE ESTIMATED GROSS PROFIT RATE OF 17.25%. 2 2.2 THE LD. CIT(A) CONSIDERING THE FACT THAT THE ASSESSEE HAS DECLARED THE GROSS PROFIT RATE OF 17.08% IN THE IMMEDIATELY PRECEDING YEAR HELD THE APPLICATION OF GROSS PROFIT RATE AT 17.08% AS JUSTIFIED IN THIS CASE AFTER UPHOLDING THE REJECTIO N OF BOOKS OF ACCOUNT. HE HOWEVER DISMISSED THE APPEAL OF THE ASSESSEE ON THE MERITS AS WELL AND SU STAINED THE TRADING ADDITION MADE BY THE AO. 2.3 I HAVE HEARD PARTIES WITH REFERENCE TO THE MATE RIAL ON RECORD. ADMITTEDLY THE PAST HISTORY WAS CONSIDERED BY THE LD. CIT(A) WHO ALSO AFTER UPH OLDING THE REJECTION OF BOOKS OF ACCOUNT FOUND THE ESTIMATION OF INCOME JUSTIFIED BY APPLICATION OF GROSS PROFIT RATE OF 17.08% WHICH WAS THE GROSS PROFIT RATE IN THE IMMEDIATELY PRECEDING YEAR OF T HE ASSESSEE. HE HOWEVER ASSIGNED NO REASON TO SUSTAIN THE ADDITION BY APPLICATION OF GROSS PROFIT RATE AT 17.25%. SINCE THE BOOKS OF ACCOUNT HAVE BEEN REJECTED FOR SERIOUS DEFECTS THE ESTIMATION O F INCOME BY APPLICATION OF GROSS PROFIT RATE AS PER ASSESSEE'S OWN HISTORY WAS PROPER. I THEREFORE UP HOLD THE FINDINGS OF THE LD. CIT(A) THAT ESTIMATION OF INCOME BY APPLICATION OF GROSS PROFIT RATE AT 17 .08% IS JUSTIFIED AND DIRECT THE AO TO RECOMPUTE THE INCOME BY APPLICATION OF SUCH GROSS PROFIT RATE AT 17.08%. AS A RESULT THE GROUND NO. 1 OF THE ASSESSEE IN APPEAL STANDS DISMISSED AND GROUND NO. 2 STANDS PARTLY ALLOWED. 3.0 IN THE RESULT THE ASSESSEE'S APPEAL STANDS PAR TLY ALLOWED AS PRONOUNCED IN THE OPEN COURT ON 10-07-2013. SD/- ( B.R. JAIN ) ACCOUNTANT MEMBER JAIPUR MISHRA COPY FORWARDED TO :- SHRI NAND KISHORE BARETH JAIPUR THE ITO WARD- 6(2) JAIPUR BY ORDER THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO.528/JP/2013) AR ITAT JAIPUR. 3